You sound like the poster child for the "Making Home Affordable" Program that the government has instituted.

Thanks Mike C, you got me thinking a lot more about my network and it is much bigger than I sometimes realize.I am actually really lucky that both of my parents did very well for themselves so naturally our family spends a lot of time with other successful people.

With your rationale, we should all walk away from our home, auto, student loans, alimony, child support and any other contactual agreements we made just because we don't like their outcome.

My mom was a single-parent school teacher raising two kids.

The second option would be to have my parents buy the property with cash.

There is plenty of case law that your account should look into where parents create LLCs with their children and a taxable gift occurs when the property is transfered into the LLC because the child's equity interest in the LLC exceeds his or her capital contirubtion.

My current living situation: I may sound like a loser, but I'm living with my parents so I can live frugally for now.

:) Buy a little boutique hotel next to the beach in Costa Rica and live there, travel all over the world with my children, pay off my parents' debt.

A related person includes: Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etcA corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporationA partnership in which you directly or indirectly own more than 50% of the capital interest or profits interestsRepayment of credit.

Dental care, child care, free quality education, etc, etc.